Reference no: EM132405843
True or False:
1) According to Keynesian Theory, a movement toward a surplus in the federal budget will have an expansionary impact on the economy
2) The term dI/dY relates to the investment multiplier, while the term dY/dI has to do with whether investment is a function of the level of income
3) Considering a model in which investment is treated as a function of income, the size of the Keynesian government expenditures multiplier is increased
4) Other things remaining the same, the larger the marginal propensity to import, the smaller the value of the investment and government expenditures multiplier
5) Other things remaining the same, the higher the marginal propensity to save, the greater the size of the multipliers
6) In a national income accounting sense, if a good is finished, it is considered a final good
7) Since GDP measures the nation's output at current market prices, then if a good or service is not exchanged through the marketplace, it does not go into GDP.
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What is the horizontal intercept of the lm curve
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